True or False: Credit unions are required to block property and payment of transactions involving individuals on OFAC's SDN List.

The correct answer is true because credit unions, like other financial institutions, are mandated to comply with the regulations set forth by the Office of Foreign Assets Control (OFAC). This includes the requirement to block any property and payments of transactions involving individuals or entities listed on OFAC's Specially Designated Nationals (SDN) List.

When a credit union identifies that a member or a transaction pertains to someone on the SDN List, it must take action to freeze the assets and refrain from processing any transactions associated with the designated individual or entity. The purpose of this regulation is to prevent financial support to terrorists, drug traffickers, and other sanctioned individuals or organizations.

This requirement applies universally to all transactions and property of listed individuals, regardless of the amount or whether the transactions are domestic or international. Hence, the other responses do not accurately reflect the comprehensive nature of the obligation placed on credit unions regarding the SDN List.